2022 AFBA Financial Planning Guide

• He/she is qualified in a critical military skill. • He/she isn’t receiving special nuclear-training pay. • He/she reenlists or voluntarily extends their enlistment for a period of at least three years. • He/she enlists in a regular component of the service concerned; or continues in a reserve component of the service concerned. Flight Pay. There are four primary special pays for members whose military duties involve aerial flight. a. Aviation Career Incentive Pay for Officers. Active duty commissioned officers on aviation duty are entitled to Aviation Career Incentive Pay (ACIP). Aviation career incentive pay is restricted to regular and reserve officers who hold, or are in training leading to, an aeronautical rating or designation and who engage and remain in aviation service on a career basis. The amount payable ranges from $150 to $1,000 per month. b. Critical Skill Incentive Pay. This pay may be authorized in lieu of HDIP for enlisted crew members. Enlisted aviators may receive continuous flight pay as long as they meet flying requirements. The pay ranges from $225 to $600 a month. c. Aviation Bonus Pay. An annual bonus of up to $35,000, depending on branch, may be paid to selected officers who agree to extend their aviation service. d. Hazardous Duty Incentive Pay (HDIP) . HDIP is payable to crew members whose duties can only be performed on an in-flight aircraft. Monthly officer payments range from $150 to $250 while the monthly entitlement for enlisted personnel ranges from $150 to $240 per month. Foreign Language Proficiency Bonus Pay. A monthly payment, not to exceed $500 for a single language or dialect, or $1,000 for two or more, is payable to those who maintain

b. Nuclear Qualified Officer Pay. In order to train and retain nuclear qualified officers, the Navy is authorized to pay two types of special pays: an annual Continuation Pay not to exceed $40,000 and an annual Incentive Bonus not to exceed $22,000. Diving Pay. A monthly payment of up to $240 is given to officers and up to $340 to enlisted members whose duties involve diving. Enlistment & Reenlistment Bonuses. Enlistment Bonus. There are many benefits to joining the military, but few directly affect pay as much as enlistment bonuses which can be as much as $50,000. Reenlistment Bonus. The Selective Reenlistment Bonus (SRB), sometimes called the Selective Retention Bonus, is a cash incentive paid to enlisted members to encourage reenlistments and retention in critical military skills. Bonus award levels are adjusted as needed to ensure the services are retaining the correct quantity and critical skill mix to optimize their ability to accomplish the mission. Currently the SRB ranges from $30,000 to $100,000. Members may qualify for up to 2 SRBs in their military career for a maximum total of $200,000. The bonus is usually paid in a lump sum or 50% paid at the time of reenlistment. The remaining bonus amount is paid in equal annual installments. It is taxable, however if the member reenlists in a tax-free combat zone or is a foreign national who reenlists OCONUS it is not taxable, and the installments are also tax-free. Active duty members may be eligible for a reenlistment (or retention) bonus, if: • He/she has completed at least 17 months of continuous active duty (other than for training) but not more than fourteen years of active duty.

CHAPTER 1 | MILITARY PAY & ALLOWANCES

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